S.Africa’s Nedbank rejigs ailing retail unit
Written on November 26, 2010 by Wiley Hayden
Nedbank, the South African lender formerly the target of a bid from Britian’s HSBC has rejigged the structure of its ailing retail unit, as it looks to turn around the money-losing business.
Nedbank, which has been hit hard by soured home and vehicle loans, this month gave Ingrid Johnson, head of both the retail and business banking units, direct control of the retail arm.
The bank said in a statement on Friday the retail unit has been reshuffled to emphasise entry-level banking, small businesses and entrepreneurs.
The unit is now organised into four businesses: consumer banking, retail relationship bank, cards and secured lending, the bank said.
Retail relationship banking is a combination of small business services and private banking, Nedbank said.
Ciko Thomas, currently responsible for marketing and corporate affairs, will take over as head of personal banking, Nedbank said.
Sibongiseni Ngundze, a 20-year banking veteran, has been named head of retail relationship banking.
Sydney Gericke will remain as head of cards, while Keith Hutchinson will remain the head of secured lending.
The retail unit posted a headline loss of 115 million rand in the six months to end-June.
Analysts had said that an acquisition by HSBC, Europe’s largest bank, would have helped Nedbank fix the business, which has been saddled with bad loans.
HSBC last month walked away from exclusive talks to take up to a 70 percent stake in Nedbank, a deal that would have been worth around $8 billion.
Shares of Nedbank are up 4.7 percent so far this year, underperforming an 11.4 percent rise by Johannesburg’s Top-40 index of blue chips.
Similar Posts:
- Green Shoots at Last: Small Business Lending Finally Starting to Thaw
- Consumers try to avoid High Street debt
- When Will We See The “First Bank Of Walmart”?
- U.S. Existing Home Sales Rise For Third Straight Month In December
- Choice shows support to permanent financial claims scheme
